South Korean shipbuilders receive low number of orders in Q1 2016

South Korean shipbuildersSouth Korean shipbuilders reported lowest number of orders in Q1 2016 in the last 15 years. In the first quarter of the year, the total number of orders amounted to 77 vessels, representing 2.32 million compensated gross registered tons (CGT). The result is terrible for the industry and represent a decrease of 75%, compared to the same period last year. Moreover, two of the three leading shipbuilding companies in Republic of Korea – Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries, did not received any orders yet. The stagnation in shipping and offshore industry, as well as overcapacity in container transport, are the main reason for decreasing number of orders and bad finance situation of country’s shipbuilders.

The South Korean automakers also reduced the number their orders, as in Q1 2016 requested only 8 ships with compensated gross registered tonnage of 171,000 GRT.

At the end of 2015 three major shipbuilding company in South Korea, which are also the first triple world suffered record losses at the level of 8 trillion KRW (about 6.7 billion USD).